Surging e-cigarette use by young adults is "a major public health concern," according to the U.S. surgeon general, who will recommend increased regulation of the products in a report set to be released today.

Those will include higher taxes, raising the minimum age to 21, incorporating e-cigarettes into smoke-free laws and restricting certain marketing efforts.

Reynolds American (NYSE:RAI) is down 2.84% after missing Q3 estimates.

During the company's earnings call, management lowered guidance for 2016 industry cigarette volume to -2.5%, from -2.0% prior. They also updated on the new $2.0B repurchase program, saying $75M of the allowance was tapped during the quarter.

Shareholders holding sizable positions in SABMiller (OTCPK:SBMRY) are in the spotlight as the company's meeting on September 26 approaches. The vote on the Anheuser-Busch InBev (NYSE:BUD) merger will be the main event of the SABMiller gathering.

Large institutional shareholders such as BlackRock and State Street Global Advisers are seen approving the deal because they also own interests in BUD and Molson Coors, but the hedge fund vote is harder to forecast. Some hedgies may gamble and skip out on voting by declining to convert their options and derivatives to save on the exercise tax.

Another reason that the merger vote may be closer than anticipated is that both Altria (NYSE:MO) and the Santo Domingo family are excluded from having a say.

Altria Group (NYSE:MO) reaffirms 2016 EPS guidance of $3.01 to $3.07. The consensus estimate from analysts is at $3.05. Altria's guidance doesn't include new charges related to the early retirement of debt.